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Crowdestate real estate crowdfunding marketplace overview

By MPI20th August 2018News, Peer-to-Peer Lending, Real estateCrowdestate, crowdfunding, crowdinvesting, invest, investing, investor, peer-to-peer lending, real estate, real estate investments

Crowdestate is a real estate crowdfunding marketplace offering high-quality, pre-vetted real estate investments. Their close relationships with different local real estate developers and brokerage companies give them access to a large number of off-market real estate investments. Only the best investments surviving the due diligence process are published for investing.

While all relevant information required for making proficient investment decisions are attached to each investment, all investment decisions are made by the investors based on their personal investment preferences and risk tolerance. Extensive background information, business plans, and financial models combined with a low 100 euro minimum investment are making real estate investing quick and easy.

Online marketplace and underlying technology provide access to the real estate investments regardless of your location or time zone.

At the same time, Crowdestate is a perfect partner for real estate entrepreneurs having a bright investment idea but lacking etiher capital or liquidity. Crowdestate is their professional funding partner, consolidating hundreds or thousands of smaller investment orders into a single lump sum.

How it works and who can invest?

You should be a registered user to gain access to the investment opportunities. Before investing, you are expected to provide Crowdestate with necessary information and confirmations required by the law.

As a registered user, you can open one or several investments accounts (for instance, one for your personal holdings and the other for your investment company). All your transactions (investments, distributions, payments etc) will be reflected on your investment account.

You should have sufficient free funds on your investment account to start investing. Funds can be added to your investment account through wire transfer, please always use investment account’s unique reference number to ensure smooth transactions.

Please review investment opportunity before making any investment decisions. Crowdestate’s investment opportunities are of different length, risk profile and return expectations. Please consider the suitability of any investment opportunity to your personal risk tolerance and investment horizon. If the available opportunity does not match with your preferences, please do not invest in it. We are regularly adding new real estate investment opportunities and in time you will find a suitable one.

If you have found a suitable real estate opportunity, please start investing by entering your investment amount and concluding the necessary agreement. At the moment of signing the agreement, Crowdestate will make the reservation in your investment amount on your investment account.

In case the funding campaign is successful (the investment opportunity gets funded before the deadline of the funding campaign), Crowdestate will proceed to concluding the investment transaction. During the settlement process, your investment amount will be debited from your investment account and transferred to the Sponsor.

In case the funding campaign fails (the investment opportunity falls short of full funding before the stated deadline), your investment agreement and the reservation on your investment account are automatically cancelled.

Investors from all countries are welcomed in Crowdestate loans except US citizens (due to the regulations the US government has set).

Investment minimum and maximum amount

The minimum amount of any single investment is usually EUR 100,00 (one hundred euros), and investments can be made with 100 euro intervals (i.e 100, 200, 500, 1000 euros etc).

Any new investment opportunity opens with a 24 hour prebooking period. This is a period where one investor can make one investment order within the preferred maximum investment amounts. The final investment amount will be determined by the number of prebooking investors. It will remain between 100€ and your submitted maximum investment amount.

Different types of capital and their meaning

Equity is the capital placed in the company by its owners. The owners are paid the last, after all liabilities have been paid.

Mezzanine is a hybrid capital (subordinated loan or preferred equity) that lies between equity and secured loan. It has a lower risk than equity – mezzanine financing is repaid before equity, but after all bank obligations have been fulfilled. In addition to the usual interest, bonuses that depend on the profitability of the project may be added to the mezzanine capital.

Unsecured loan is a layer of capital between equity and secured loans. They are riskier than secured loans, but also more profitable. Unsecured loans are repaid to the owner of the capital after all secured debts have been repaid.

Secured loan is the safest and thus the least profitable type of capital. The loan is secured against a collateral, which is usually a mortgage on the assets of the company or some other type of collateral. Secured loans are always repaid in the first priority.

Different types of real estate investment and their meaning

Rental – Investments to projects with available cash flow.

Development – Investments to property development projects (the construction and sale of buildings).

Speculative – Risky early-stage investments to a property where the main parameters of the development project are known, but they can change significantly during the implementation of the project (e.g. the development process of the detailed plan and its duration as well as building rights).

Various asset classes and their meaning

Working capital is a capital needed for financing the running operations of a company.

Investment is a capital placed in the development of a company, in particular in its main assets.

Bridge financing is a temporary short-term financing, usually later replaced by a long-term and more stable financing solution.

M&A is financing mergers and takeovers of businesses.

The first loan originator from Ukraine has launched on Mintos p2p lending marketplace!

By MPI19th August 2018News, Peer-to-Peer Lendingbuyback guarantee, Dinero, EUR, microfinance, Mintos, MIntos Finance, Mondoo SIA, peer-to-peer lending, Short-term loans, Ukraine

Mintos is continuing its geographical expansion and they are happy to announce that they have just launched the first loan originator from Ukraine on the marketplace! Dinero is the fastest growing online lender in Ukraine and it specialises in short-term loans. The company now offers you the opportunity to invest in its short-term loans listed in EUR on Mintos with expected net annual returns of up to 9.5%.

Dinero was established in 2017 and as of June 30, 2018, it has issued more than 59 000 loans with a net loan portfolio of more than EUR 2 million. The main goal of Dinero is to provide customers with immediate assistance in the event of unforeseen financial situations. The way the company assesses the creditworthiness of its clients is by using various scoring models, depending on the clients’ sociodemographic parameters such as age, credit history and other factors.

“Dinero is very proud to join the Mintos marketplace. We see marketplace lending as one of the global financial market trends, and Dinero is the first Ukrainian microfinance company to join a European lending marketplace,” said Ilya Vesely, CEO of Dinero.

Ukrainian-issued short-term loans from Dinero on Mintos range from around EUR 20 to EUR 360. The repayment period ranges from 7 to 30 days. You can expect a net annual return of up to 9.5%.

All Dinero’s loans are secured with a buyback guarantee, meaning any loans that are delinquent for more than 60 days will be repurchased. The company will maintain 10% of each loan placed on Mintos on its balance sheet, to maintain its skin in the game.

Investment structure

Taking into consideration legal requirements and investors’ interests, investors will be able to obtain exposure to Dinero loans by investing in loans issued by Mintos Finance SIA, Mintos Group company, to Mondoo SIA, a Dinero group company.

The repayment of each loan issued by Mintos Finance to Mondoo will be pegged to the repayment of a respective loan issued by Mondoo to Dinero and this loan will be pegged to repayment of the respective loan issued by Dinero to the borrower. Mintos Finance loans will be directly secured by a pledge on claims arising from Dinero loans issued to borrowers.

Mintos Finance will provide funding to Mondoo up to 90% of the principal of a respective loan Dinero has issued to its borrower. Accordingly, Dinero will keep 10% skin in the game. Dinero will repay the loan to Mondoo in lockstep with the repayment of the respective loan Dinero has issued to its borrower.

Should the borrower’s loan become delinquent for 60 days or more, Mondoo would ensure the repayment to Mintos Finance of the respective part of the loan received from Mintos Finance in full, together with accrued interest and Mondoo would ensure the buyback of the claims on this loan from investors.

“We are very pleased to welcome Dinero to the Mintos family. Our main goal at Mintos is to create a global marketplace for loans and geographical expansion is key to achieving this goal. We hope our investors enjoy this fantastic opportunity to diversify their investment portfolio and invest in Ukraine-issued short-term loans,” says Martins Sulte, CEO and Co-founder of Mintos.

The typical borrowers of loans issued by Dinero are aged 18 to 75 years, who usually take loans for personal unforeseen expenses. The company charges its borrowers an annual percentage rate (APR) of 270%.

Since its foundation in November 2017, in just eight months of operations, the company has disbursed a total of more than EUR 4 million in loans. Dinero currently employs more than 80 employees and as of June 30, 2018, the number of active customers exceeded 37 000.

New Envestio project – Crypto-mining Container Phi200

By MPI9th August 2018News, Peer-to-Peer Lending, Smart moneybitcoin, Crypto-mining, crypto-mining industry, crypto-mining unit, Cryptocurrency, Envestio, Etherium, hardware, Intel Xeon Phi processors, invest, investment, investor, mobile mining unit, Ostbin Group, peer-to-peer lending, secured debt

Envestio informed today that a new investment opportunity is available at the portal to all registered participants.

By launching the project “Crypto-mining Container Phi200” (Project ID EN018025), Envestio continues to expand the successful cooperation with the representatives of crypto-mining industry.

This loan is fully secured by mixed collateral and personal guarantee of the main beneficiary of Ostbin Group Ltd.

As usual, you can invest any amount starting from 1 EUR. Minimum deposit to the investment account is EUR 100.

If you invest for the first time at Envestio don’t forget that you can get € 5 and a 0.5% cashback bonus for the investments made in the first nine months (270 days), more details HERE.

Investment opportunity

High-yielding investment in crypto-mining sector, financing of a crypto-mining hardware assembling process.
Secured debt, 20,5% planned annual return.
Investment principal buyback is available at 5% penalty rate.

Project description

Ostbin Group is a company, established by IT professionals in order to conduct different operations on the crypto-mining market, such as assembling and selling crypto-mining hardware, direct crypto-mining using own hardware as well as management of crypto-mining facilities, owned by external parties.

The company is already known to Envestio participants by its fully-financed project “Crypto-mining Farm 130GTX1080ti”. Ostbin Group is constantly developing new approaches and works only with the newest hardware on the market in order to make mining process more efficient and achieve high and stable profitability even in volatile environment, which is observed on the crypto-mining market in 2018.

This time Ostbin Group is offering a “secured debt” type investment project.

Ostbin Group has recently received a new order and signed a contract with the end customer for assembling a modern crypto-mining unit of a larger scale. Now the company is looking forward to attract co-financing with help of Envestio participants in order to complete this project. The target amount is EUR 800,000 and investment horizon constitutes 9 months – term that is necessary for purchasing and delivering the hardware, assembling the mining unit, and receiving the final payment from the customer.

The mining hardware is going to be placed inside a standard 40-ft container, equipped with industrial-type automated cooling system, allowing it to operate within approximately 70 degrees wide temperature gap (-35oC to +35oC). The hardware filling of the mining unit is formed by 200 latest generation mining servers, built on basis of Intel Xeon Phi processors. This hardware is characterized by longer lifecycle, extraordinary operational flexibility, and higher effectiveness than most of the crypto-mining solutions that are available on the market in the second half of 2018. Consequently, this mobile mining unit is going to be one of the most powerful and efficient products of those offered on the global market.

Market

Cryptocurrency market currently experiences exponential growth with total capitalization exceeding EUR 215 billion in August, 2018. This is a rapid increase from beginning of the 2017, when gross capitalization amounted more than 10 times lower number, i.e. EUR 20 billion. The market remains highly volatile, however, the technology behind it is constantly developing and the involved number of important players is growing.

Bitcoin remains the leading currency on the market with around 47% of total capitalization value. It is followed by Etherium with 16% and Ripple on the third place with 6%.

An increasing number of traditional institutions such as central banks, stock exchanges, and even some governments are demonstrating increasing interest to the blockchain industry market.

Sample repayment schedule

Envestio participant’s investment – EUR 1 000.00
Payments:

08.09.2018 – EUR 17.41
08.10.2018 – EUR 16.85
08.11.2018 – EUR 17.41
08.12.2018 – EUR 16.85
08.01.2019 – EUR 17.41
08.02.2019 – EUR 17.41
08.03.2019 – EUR 15.73
08.04.2019 – EUR 17.41
08.05.2019 – EUR 1 016.85

Total expected return: EUR 1 153.33

Why is diversification important when investing?

By MPI8th August 2018Smart moneydiversification, invest, Lenndy, peer-to-peer lending, smart money

Diversification

When investing to loans or other traditional asset classes, we often meet a phrase ‘to diversify‘. You have probably also heard about the expressed by W. Buffet, one of the most famous investor in the world, comparison of diversification, stating that one should not keep many eggs in one basket.
Description of diversification is very elementary – using various ways. If, for example, you go on a sightseeing trip, it is always recommended to keep your own funds in at least several different places, in order during accident you would not lose all the intended for travel expenditure money.
Many experienced businessmen and investors follow this condition. Investors choose investments from different asset classes, business fields and countries of the world. This helps to ensure that losses, occurred as a result of any outcomes, do not interrupt the return of the entire portfolio.

How to ensure suitable diversification in loans market?

– When investing to loans for business, diversification is not of less importance. Although the provided in peer-to-peer lending platforms loans are protected by agreements including various protection measures (asset mortgage, personal warranty, guarantees of the third parties, insurance, etc.), however, there is a probability that a loan beneficiary will not be able to fulfill his financial obligations and will face difficulties when covering the loan balance. In such case, one should not urge to write off the investment as not repaid, however, it can take long months or even years until legal protection measures work out and the asset is finally recovered. For this reason, investors are recommended to invest in smaller amounts to as many as possible publicized loans, in order to eliminate the risk and reduce it to minimal. Excellent diversification can be ensured with a help of auto-investment function.
– In still developing market of crowdfunding, it is also recommended not only to suitably evaluate the platform, in which you are planning to invest, but to select at least several of them, which meet your needs. This way, you will reduce even more systematic risk that, in case of platform operator‘s bankruptcy, you will not incur the loss of the entire portfolio.
– One of the main P2P Marketplace’s advantages is supply of different loans operators. In such platforms, besides of choosing the loans of different loans operators, you can distribute your portfolio according to the country you like, types of loans, interest rate and terms. In case of bankruptcy of any loans operator, investors do not incur harmful losses as a result of suitably chosen diversification. This is a big advantage for investors, when comparing with traditional P2P lending platforms, representing themselves as one loans operator.
– The last, but not the worst advice is careful evaluation of own financial possibilities and capital distribution according to different investment instruments. Market of the 21st century is dynamic as ever before, more and more actions may cause market fluctuations, thus, it is recommended to arrange own investments portfolio according to the risk and return ratio that is acceptable to you. Investors may choose between investments to real estate, bonds, shares of companies, stock and many other alternative investments.

Source: Lenndy.com

EGE Finance has just launched on Mintos and offers investment opportunities in EUR

By MPI3rd August 2018News, Peer-to-Peer LendingBB Finance Group, buyback guarantee, EGE Finance, Finland, invest, Mintos, peer-to-peer lending, Short-term loans

EGE Finance from Finland has just launched on the Mintos peer-to-peer lending marketplace. You can now invest in its short-term loans and earn net annual returns of 9 to 10%.

EGE Finance is part of BB Finance Group which was founded in Estonia in 2006. It is a technology-driven consumer credit company and the team consists of 70 professionals worldwide. The company provides short-term loans to clients mainly in Estonia, Finland, Czech Republic and Georgia with its headquarters located in Tallinn.

“BB Finance Group has earned the trust of many institutional and private investors. However, we are always interested to further diversify our funding sources and let new investors earn returns on our good results. Mintos has also shown real professionalism in the lead up to listing our loans on their marketplace. We are always glad to find opportunities to work with such people and companies,” said Urmo Kokmann, the COO and co-founder of BBFG.

On Mintos, the average Finland-issued loan from EGE is around EUR 270 with a repayment period of up to 93 days. You can expect a net annual return of 9 to 10%.

All loans from EGE will come with a buyback guarantee and will be repurchased if a loan is delinquent for 60 days or more. Furthermore, it will retain 5% of each loan placed on Mintos on its balance sheet to keep its skin in the game.

BB Finance Group has issued around 650 000 loans worth EUR 135 million. Since its inception, the company has attracted 430 000 registered clients. Its net portfolio amounts to EUR 13.8 million. In 2017, the company issued EUR 30 million worth of loans, 82% of which were to returning customers.

Since 2014 the company has continuously invested in technology. As a result, it has delivered a portfolio growth of 47% per year on average. BB Finance Group develops and monitors its own credit scoring system, decision-trees and also uses external credit databases. Over 80% of its clients last year were returning customers who had already repaid one or more previous loans and shown a reliable repayment discipline. Non-performing loans contribute to 4% of the company’s loan portfolio in Finland.

How does Envestio buyback guarantee works?

By MPI30th July 2018News, Peer-to-Peer Lendingbuyback guarantee, Envestio, investment, peer-to-peer lending, secured debt, subordinated debt

Since the launch of Envestio crowdinvesting platform they have been constantly receiving questions about how safe the investments are, and what is the legal protection of investors in case of borrower’s default. Although, some information is available in different sections of Envestio website, we feel that there is a need to summarize it in a more concentrated format using this article.
In addition, the article provides a detailed description of how exactly investment repurchase (or buyback) guarantee works in an improbable case of borrower’s default.

Let’s start with some terminology. Currently, at Envestio there are two types of projects available to invest in – secured loans and subordinated loans:
– “Secured debt” status means that besides providing full information about the business venture and concluding necessary agreements, the investment project owner has provided Envestio with an additional legal insurance, i.e. mortgage, mixed collateral, personal guarantee.
– “Subordinated debt” status means that all financial and legal information about the project has been submitted to Envestio and the essential agreements concluded, but no additional guarantee is legally arranged.

Then, many questions are being asked about Envestio buyback or repurchase guarantee. Here is what Envestio FAQ section says:
———————————————-
“What if I change my mind? How does the buyback guarantee work?
Envestio buyback (or repurchase) guarantee means that any Envestio participant at any moment can sell an investment from his or her investment portfolio back to Envestio and instantly receive invested money back to his or her investment account. Since the funds, gathered via Envestio portal, constitute a certain share of total financing that is attracted to specific project, besides traditional funding from banks, Envestio is sufficiently capitalized to execute any buyback immediately.
Cost of performing buyback is calculated and shown to Envestio participant in Envestio personal area.
Please note that in some cases cost of buyback can account to substantial percentage of invested amount.”

How does it work in reality, and how secured debt differs from subordinated debt? Here is an example:

– Envestio participant invests EUR 1000 in a project that closes on November 30, 2018. Project assumes monthly interest payments.
– At any moment before 31/11/2018 it is possible to sell back the investment share to Envestio with 5% fee charge, i.e. for EUR 950. All interest payments, which are already received, remain in investor’s possession. This condition is the same for both secured and subordinated loans.
– In case the borrower does not repay the principal after 31/11/2018 the event of technical default takes place. After that the borrower still has 5 working days to settle the debt without legal proceedings. If this is not done, then the delay turns into standard default and Envestio, with a support of a leading Estonian debt collector agency, starts a legal process against the borrower, including execution of all guarantees that were provided.
– Investor, who invested EUR 1000 in a secured debt project, gets back 80% of the investment principal, which is EUR 800, on the next working day after the event of standard default has taken place. For the remaining 20% there is a choice: instantly get back half of this amount or wait until the debt is recovered from the borrower. As a result – at least 90% of the investment is fully secured.
– Investor, who invested EUR 1000 in a subordinated debt project is supposed to wait until the debt is recovered from the defaulted borrower using available legal instruments.

In order to provide more comfortable investing experience for the participants, Envestio is conducting negotiations with all owners of “subordinated-type” investment projects aimed at converting those into “secured-type” loans.

Get 1% cashback bonus for your investments on Fast Invest

By MPI24th July 2018News, Peer-to-Peer Lending, Smart moneybonus, cashback, Fast Invest, invest, peer-to-peer lending

Fast Invest will give you 1% cashback for your investments made until the 31st of August. There are no minimum or maximum limitations for this proposal.

Here is what you need to do:

– log in to your account or register
– add funds to your account
– pick loans from the loan list and start investing or
– create auto invest portfolio to invest these funds

The cashback proposal has its terms and conditions. Shortly:

– Cashback is applied only for funds added during the period from 16th of July till 31th of August.
– The bonus will be frozen for 12 months period. You need to keep your investments in FAST INVEST platform for at least for one year to get the bonus.
– If you are not able to hold your investments for twelve months, you will lose your bonus.
– The bonus will be automatically activated after twelve months investment period.
– This promotion cannot be used with other proposals.

Lime Zaim has launched on Mintos and initially offers investment opportunities in RUB and will begin to offer loans in EUR in the coming weeks

By MPI12th July 2018News, Peer-to-Peer LendingEUR, invest, investing, investor, Lime Group, Lime Zaim, Mintos, peer-to-peer lending, personal loans, RUB, Russia

The Lime Zaim company is a technology-driven financial service provider from Russia and will offer returns up to 13% and 18% for its EUR and RUB loans respectively on the Mintos peer-to-peer lending marketplace.

Lime Zaim, part of the Lime Group, was established in 2013 in Russia and began issuing loans in the first quarter of 2014. Lime Zaim’s lending products assist under-banked consumers to expand their purchasing power and to manage their short-term cash flow needs. To achieve this, the company offers short-term loans and instalment loans to citizens of Russia completely online. Its proprietary machine-learning scoring algorithms combine standard credit history information with behavioural and demographic factors to provide it with a more accurate credit score. This allows the company to offer credit to borrowers passed over by traditional lenders.

“The Mintos marketplace offers an outstandingly flexible source of funds enabling us to smooth capital flows by exactly matching assets with liabilities and to further diversify our funding structure,” says Kevin Hurley, Vice President of Finance at Lime Capital Partners.

On Mintos, the average Russia-issued personal loan from Lime Zaim is around RUB 7 000, and the average EUR equivalent is EUR 100. The average repayment period is 28 days. You can expect a net annual return of up to 18% for its loans listed in RUB and up to 13% for its EUR loans.

All loans from Lime Zaim come with the buyback guarantee from its mother company, Laim Zaim Holdings Limited. This means, if a loan is delinquent for more than 60 days Laim Zaim Holdings Limited will repurchase the loan. The loan originator will also keep 10% skin in the game, to ensure its interests align with those of investors.

Since its founding in 2013 by Alexey Nefedov and Stanislav Sergushkin, Lime Zaim have scored hundreds of thousands of loan applications, issuing 393 000 loans to more than 100 000 customers.

Lime Zaim’s revenue for 2017 was around EUR 11.6 million and net profit for the same time period was around EUR 1.4 million. As at January 1, 2018 it had a net loan portfolio of more than EUR 2.3 million.

Spanish mortgage lender FIREOF has just launched on Mintos p2p lending marketplace

By MPI10th July 2018News, Peer-to-Peer LendingFIREOF, FIREOF DM, invest, loans, Mintos, mortgage lender, peer-to-peer lending, Spain, Special Purpose Vehicle, SPV

There are now even more investment opportunities in mortgage loans, as Spanish mortgage lender FIREOF Management (FIREOF) has just launched on the Mintos peer-to-peer lending marketplace. You can invest in its loans now and enjoy net returns of up to 8%.

Established in 2015, FIREOF is an asset secured lending business whose mission is to provide a financial bridge to Spanish consumers. FIREOF pursues a win-win relationship with their borrowers. The company is fully licensed and audited and it provides its credit products through established brokers.

FIREOF has a Special Purpose Vehicle (SPV) that will place its loans on Mintos, FIREOF DM. An SPV is a subsidiary company with an asset/liability structure and legal status that makes its obligations secure even if the parent company would experience financial difficulties. The SPV used for Mintos investors was incorporated in 2016, while the holding company has been operating in real estate lending since 2009. All loans and investments will be held by the FIREOF DM, while FIREOF will service the loans. FIREOF DM, the loan originator as a pure cashflow SPV, has no employees nor liabilities except from the assignments of Mintos investors and its own equity from its investors and shareholders. The SPV adds an extra layer of security for investors on Mintos.

“Our motivation is to democratise the mortgage financing business by offering the opportunity for small investors to access the biggest financial asset in the world. Currently, only large financial institutions can invest in this market, and they alone benefit from the fixed income secured by real estate collateral. We want to change this,” said FIREOF Managing Director Agustín Fernández Clemente.

The average Spain-issued mortgage loans from FIREOF on Mintos will be EUR 50 000 with a repayment period from one to five years, which will be paid in monthly instalments. The loan-to-value (LTV) ratio is not greater than 45%. The typical borrower is a middle class wealthy real estate owner with a need for short-term liquidity.

To keep its interests aligned with investors, FIREOF will maintain 15% of each loan placed on the marketplace. The loans will initially not be secured with a buyback guarantee.

As of June 30, 2018, FIREOF has an assets under management portfolio of EUR 25 million. The company has eight full-time highly qualified senior employees with a total experience of more than 100 years in the Spanish real estate lending business.